- Capital on Tap, a leading FinTech, successfully launched London Cards No.2 – its second public securitisation facility raising £350 million, significantly exceeding the £250 million target.
- With overwhelming investor demand nearly tripling the investor base to 21, the deal is a milestone that expands Capital on Tap’s funding diversity and reduces its overall cost of funds.
- This landmark transaction solidifies Capital on Tap’s position to better serve small and medium businesses by increasing access to innovative financing solutions they need to thrive and grow.
London Cards No.2, which closed on 16 April 2024 and raised £350 million, surpassing the original target of £250 million due to overwhelming investor demand. This represents a significant expansion from the London Cards No.1 which raised £250 million.
“Our small business customers are the driving force behind everything we do,” said Damian Brychcy, CEO of Capital on Tap. “The tremendous success of London Cards No.2, nearly tripling our investor base from 7 to 21, is a testament to the market’s confidence in our ability to meet the financing needs of small business owners. This £350 million funding will allow us to significantly expand access to the products small businesses need to thrive and grow.”
Rob Tanna-Smith, Executive Director, at J.P. Morgan said: “We are pleased to support Capital on Tap on their second public ABS transaction. This transaction provides additional funding diversity to Capital on Tap and we are delighted to continue to support the company in their growth as a credit card provider to SMEs across the UK.”
John Millward, Managing Director at HSBC said: “This is a fantastic achievement for Capital on Tap and an important milestone in further building and diversifying their funding platform. Following their landmark first issuance in 2023, HSBC is again incredibly proud to support this highly successful second transaction which represents a real step-change: delivering a significantly expanded investor base and a meaningful reduction in the overall cost of funds, while also allowing for the transaction to be upsized.”
Julien Terrettaz, Director at BNP Paribas, commented: “We are delighted to have supported Capital on Tap in its second ABS transaction. It’s a remarkable achievement for the company; the deal was upsized on the back of strong investor demand despite the relative novelty of the asset class, which underscores their continued efforts in the capital markets.”
With London Cards No.2, Capital on Tap reinforces its commitment to financial innovation in service of the small business community. As the company expands its offerings, this new facility ensures Capital on Tap is well-positioned to better support small businesses into the future.
About Capital on Tap
Capital on Tap makes it easy for small businesses to manage their business spending, access funding, and earn cash back, travel, and gift card rewards. Over 200,000 small businesses have spent more than £10 billion on their Capital on Tap Business Credit Cards across the US and UK. They were recently recognised by The Sunday Times and the Financial Times as one of Britain and Europe’s fastest growing businesses, respectively.
About HSBC Holdings plc
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 62 countries and territories. With assets of US$3,039bn at 31 December 2023, HSBC is one of the world’s largest banking and financial services organisations.
About BNP Paribas
BNP Paribas is the European Union’s leading bank and key player in international banking. It operates in 65 countries and has nearly 185,000 employees, including more than 145,000 in Europe. The Group has key positions in its three main fields of activity: Commercial, Personal Banking & Services for the Group’s commercial & personal banking and several specialised businesses including BNP Paribas Personal Finance and Arval; Investment & Protection Services for savings, investment and protection solutions; and Corporate & Institutional Banking, focused on corporate and institutional clients. Based on its strong diversified and integrated model, the Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, BNP Paribas has four domestic markets: Belgium, France, Italy and Luxembourg. The Group is rolling out its integrated commercial & personal banking model across several Mediterranean countries, Turkey, and Eastern Europe. As a key player in international banking, the Group has leading platforms and business lines in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. BNP Paribas has implemented a Corporate Social Responsibility approach in all its activities, enabling it to contribute to the construction of a sustainable future, while ensuring the Group’s performance and stability.
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